LEYTE NORMAL UNIVERSITY

Bachelor of Science in Management Entrepreneurship

MIDTERM EXAMINATIONS

INSTRUCTIONS:

READ and UNDERSTAND the questions clearly and carefully. This exam is
comprised of eleven (11) items with sub questions and is designed to be completed in two (2)
hours. Answer each question clearly and legibly, stating your answer and its basis.

Start writing on the second page of your test booklet and answer each question in a
separate page, sub questions may be answered on the same page. Goodluck!
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I.
a. What is law? (3)
b. What are the essential elements of a law? (2)

II.
a. What is a State? (3)
b. Enumerate and discuss the different elements of a State. (7)
c. Differentiate de facto from a de jure government. (5)

III.
Discuss and Doctrine of Constitutional Supremacy. (10)

IV.
a. Define Commercial or Business Law and discuss its three (3) Principal Characteristics.
(5)
b. Who are proper subjects of commercial contracts? (2)
c. Differentiate the following: (3)
i.Natural and Juridical persons
ii.Absolute and Relative Incapacity

V.
The following are the elements of an obligation, except: (5)

a.) Juridical/Legal Tie

b.) Active Subject
c.) Passive Subject
d.) Consideration

Discuss your answer.

VI.
a. A natural obligation under the New Civil Code of the Philippines is one which: (3)

a.) The obligor has a moral obligation to do, otherwise entitling the obligee to damages.
b.) Refers to an obligation in writing to do or not to do.
c.) The obligee may enforce through the court if violated by the obligor.
d.) Cannot be judicially enforced but authorizes the obligee to retain the obligor’s payment or
performance.

b. How is a civil obligation distinguished from a natural obligation? Give an example of a

natural obligation. (7)

VII.

1
a. What are sources of Obligations? Discuss. (5)
b. What are the obligations without an agreement? Give examples of situations giving rise
to this type of obligation. (5)

VIII.
a. Jonel purchased a brand-new Mercedes Benz sedan from Rody, a well-known gambler in
his Barangay. Prior to the payment, they had already agreed that the price of the car would be
1.5 Million Pesos and Jonel had already made a down payment of P 500,000.00.

However, at the time of the supposed payment, Jonel mistakenly issued a check worth 1.5
Million Pesos, forgetting that he had already made an initial down payment of P 500,000.00.

Upon returning home, Jonel was reminded by his wife, Leila, that he had already made an initial
down payment of P 500,000.00; Jonel now asks you whether or not he can still recover the
excess P 500,000.00 he mistakenly paid to Rody? Discuss. (10)

b. Differentiate the concepts of Negatiorum gestio and Solutio Indebiti. (5)

c. Suppose there was no overpayment of P 500,000.00, did the issuance of the check,
validly extinguish Jonel’s obligation to pay for Rody’s car? Discuss. (5)

IX.
a. What is a pure obligation? (2)
b. Discuss the difference between an Obligation with a Period and one with a Condition? (4)
c. Distinguish between the effects of suspensive and resolutory conditions upon an
obligation. (4)

X.
At the start of their relationship in 2015, Jade, a lawyer entered into a joint account with her
boyfriend, Cardo, with PBB Bank and Trust Company with an initial deposit of P 40,000.00. As
their relationship grew, the content of their joint bank account likewise grew to a staggering
amount of P 500,000.00.

In 2018, Jade and Cardo broke up after Jade found out that Cardo was secretly dating both Kara
and Mia together with her. Three months later, Jade went to PBB Bank to withdraw all their
savings; after all, she told herself, it came from her income as a lawyer anyway.

At the bank, Jade was surprised when the bank refused to release her money saying that she had
already withdrawn the money alongside Cardo at a different branch. Jade denied this statement
saying that she had not seen Cardo in three months and that the bank had no proof that it was
indeed her who withdrew the money. She further claimed that it was the bank staff’s fault for
being negligent.

a.) Is the bank correct in withholding Jade’s withdrawal? (8)

b.) Discuss the elements of a valid obligation? (2)
c.) What is delay or default, discuss its effects to a demandable obligation? (5)

XI.
a. What are the modes of extinguishing obligations? Define each of them. (10)
b. Give the three special forms of payment. Differentiate each of them. (5)
c. What is legal tender? (5)

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